| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051997815947
Date of advice: 30 August 2022
Ruling
Subject: Main residence exemption
Question
Will section 118-195 of the Income Tax Assessment Act 1997 operate to disregard the capital gain from the insurance compensation payment after CGT event C1 occurred to the deceased's main residence?
Answer
Yes, CGT event C1 occurred to the deceased's main residence within two years of death of the deceased, satisfying the requirements of section 118-195 and disregarding the capital gain that arose from the insurance proceeds received for the destruction of the property.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased died
Within two years of the deceased's death, the property was destroyed
The property was the deceased's main residence throughout their ownership period, it was purchased by the deceased after 20 September 1985
The property was insured for an amount, which was paid to you as the executor of the deceased's estate
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195